Comments on: Why I Love Payday Loans

By: Tony Begleiter

Tony Begleiter — Sun, 16 Nov 2008 15:23:03 +0000

What happend to usury laws in this land? Interest I am reading about here used to be Al Capone business and they became illegal. They are obviously legal now. For how long?
Do’nt you parazite here on this board have any feelings of guilt, charging such a high interest rates?
In my mind you are criminal thieves and laws reflecting that should be placed in law codes again in every state.

By: Fab

Fab — Sun, 05 Oct 2008 13:47:29 +0000

Is there an equivalent to Prosper in canada ?

By: Matt

Matt — Mon, 07 Jul 2008 00:00:48 +0000

Terrible idea, and the public payday lenders are night and day different than the small ones.

They lend at 360% APR for a reason. Look at their margins. They are no higher than any other business. That should tell you 360% is the right #. Now if you believe you have a default free niche via prosper, that seems ridiculous. 1 default wipes our 4 good payers, and the industry average is about 25% default rate, so unless you’ve tapped a hidden goldmine of 1% defaults, you will suffer greatly at 27% APR. Also, you are not on any public database now. So they can go to a payday lender and get ANOTHER payday loan, since it now looks like they have no debt outstanding. They’re more likely not to pay off Joe Schmo b/c how are you going to report them to the credit agency? You can, but you’re way less likely. Plus, you’re not as efficient in terms of ACH collections. I think it’s a terrible idea. I’ll stay far away.

By: Banana Roundup : Week 27 : Personal Finance

Banana Roundup : Week 27 : Personal Finance — Sun, 06 Jul 2008 19:08:31 +0000

[...] Off Dividends and Passive Income talks about Why I Love Payday Loans. This is one of the most common reasons borrowers seek a loan on Prosper due to the interest rates [...]

By: Anthony

Anthony — Sat, 07 Jun 2008 03:21:23 +0000

Mike Dee, I completely disagree with your idea of the types of people that apply for payday loans! I sell payday loan leads to lenders and I can tell you that 80% of the leads that I sell, are from people who make $3000/mth or more.

“Crack Heads” and such type people do not get approved for payday loans because they obvious do not meet the requirements that lenders ask for.

The vast majority of those that use payday services, do so because their credit is not good and when they have unexpected situations come up, they cannot turn to your typical lending institution.